Art of Supply

On Monday, June 1st, FedEx Freight CEO John Smith rang the opening bell at the New York Stock Exchange to celebrate the fact that the company is now operating (and trading) independently.
This story dates back to the summer of 2024, when the idea of separating out FedEx's LTL operating unit was just a very believable rumor. Now they are the largest LTL provider in North America, and what one outlet described as a $9 Billion startup, with 40,000 employees.
And yet, for all of the company-led fanfare, the media coverage was… uninspired? With one notable exception that is… 
In this episode of the Art of Supply podcast, Kelly Barner covers what we know about FedEx Freight's immediate plans for their corporate freedom:
- What they plan to focus on as a company, both from a growth standpoint and operationally
- Where the company stands on the question of emissions reduction, regulatory changes, and driverless fleets
- How soon we might have some idea of how successful they will be
 
Links:
Will FedEx Freight hit the open road? (AOS, December 2024): https://artofprocurement.com/blog/supply-will-fedex-freight-hit-the-open-road 
Kelly Barner on LinkedIn: https://www.linkedin.com/in/kelly-barner-6884443/ 
Art of Supply LinkedIn newsletter: https://www.linkedin.com/newsletters/art-of-supply-6895142546301960193 
Art of Supply on AOP: http://www.artofsupply.com 
Subscribe to the Art of Procurement Newsletter: https://resources.artofprocurement.com/art-of-procurement-podcast-subscribe

Endless Shrimp is BACK at Red Lobster… a headline few people in the business world would have predicted. 
The promotion played an over-hyped role in the company's 2024 bankruptcy filing, mostly because it was easier to explain than a bad real estate leaseback deal led by investors at the time – the actual cause of Red Lobster's financial trouble.
Their new CEO, Damola Adamolekun, is best known for leading the turnaround at P.F. Chang's and was handpicked by Fortress Investment Group, the investors that bought Red Lobster out of bankruptcy.
In November 2024, Adamolekun told Today he had ended the Endless Shrimp promotion "Because I know how to do math." And yet… six weeks before the end of the company's fiscal year… it looks like their best hope.
In this episode of the Art of Supply podcast, Kelly Barner looks back at Red Lobster:
- How much progress the company has made since their bankruptcy
- The cost pressures, both internal and external, they are struggling to overcome
- And the impact a media-savvy CEO has been able to have on restaurant traffic
 
Links:
Ultimate Endless Real Estate Costs at Red Lobster https://artofprocurement.com/blog/supply-ultimate-endless-real-estate-costs-at-red-lobster
Kelly Barner on LinkedIn: https://www.linkedin.com/in/kelly-barner-6884443/ 
Art of Supply LinkedIn newsletter: https://www.linkedin.com/newsletters/art-of-supply-6895142546301960193 
Art of Supply on AOP: http://www.artofsupply.com 
Subscribe to the Art of Procurement Newsletter: https://resources.artofprocurement.com/art-of-procurement-podcast-subscribe

China's new supply chain regulations may be one of the biggest global trade and sourcing stories that almost nobody is talking about.
Decree 834 and 835 quietly took effect - immediately - on April 7th and 13th. If China decides to enforce them, they could fundamentally change how multinational companies approach sourcing, reshoring, compliance, and supplier diversification.
In this episode of Art of Supply, Kelly Barner breaks down China's newly enacted Decrees 834 and 835 — regulations designed to protect Chinese industrial and supply chain security, while potentially penalizing companies that attempt to diversify away from China.
Listen to discover:
- What China's Decrees 834 and 835 mean for Western (and China-owned) businesses
- Why reshoring and China +1 strategies may now carry new risks
- How companies could become trapped between conflicting U.S., EU, and Chinese regulations
- Why ordinary supplier due diligence and compliance audits may now face additional scrutiny
- The growing concern over "extraterritorial" enforcement and China's expanding economic leverage
- Potential penalties ranging from market restrictions to sanctions on individuals
Links:
Kelly Barner on LinkedIn: https://www.linkedin.com/in/kelly-barner-6884443/
Art of Supply LinkedIn newsletter: https://www.linkedin.com/newsletters/art-of-supply-6895142546301960193
Art of Supply on AOP: https://artofsupply.com
Subscribe to the Art of Procurement Newsletter: https://resources.artofprocurement.com/art-of-procurement-podcast-subscribe

During the pandemic, some buyers and suppliers made aggressive bets about the future. 
Demand was surging, capacity was constrained, and everyone worried more about shortages than oversupply. For a while, it looked like the logic was sound, but now one of those agreements has turned into a $175.5 Million jury verdict.
Boston Beer Company (through its subsidiary American Craft Brewery) has been found liable in a dispute with their supplier Ardagh Metal Packaging over minimum can purchase requirements.
The contracts that offer safety during times of scarcity can quickly become liabilities when markets normalize. Companies increasingly have to navigate both realities at the same time.
In this episode of the Art of Supply podcast, Kelly Barner covers:
 - The background of the Ardagh Metal Packaging and Boston Beer Company dispute
 - Why pandemic-era supply assumptions created long-tail contractual risk
 - The legal arguments around minimum purchase commitments and supplier quality claims
 - What this case teaches us about flexibility, forecasting, and commercial risk allocation
 
Links:
Kelly Barner on LinkedIn
Art of Supply LinkedIn newsletter 
Art of Supply on AOP
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"We have seen a transformation between the public sector and the private sector in terms of their relationship. We've seen enormous change in this country." - Guy Battle, CEO of Social Value Portal
The U.K. Social Value Act of 2012 requires all public sector buyers to ask suppliers how much their business will contribute to the community if they win the work up for bidding. It has not just become a differentiator among supplier proposals, it has shifted how the government is awarding its contracts.
Contributions to social value are now being included in the award process alongside cost and quality.
Guy Battle is the CEO of the Social Value Portal, and the author of a recent article published in the Journal of Public Procurement: "Social value as a lever for achieving value for money and community outcomes in procurement." He describes social value as a business's answer to the question: How do you contribute to our environment, support the local community, and bolster the local economy?
In this episode of the Art of Supply podcast, Guy discusses social value with Kelly Barner in the context of:
The longer term corporate social responsibility (CSR) and environmental, social, and governance (ESG) movement
Current regulations, and how they started a shift that has moved beyond compliance
What has been required to allow social value to build momentum and achieve scale
How public sector policy can drive change across the private sector supply base
 
Links:
Guy Battle on LinkedIn
JoPP Article: Social value as a lever for achieving value for money and community outcomes in procurement
Kelly Barner on LinkedIn
Art of Supply LinkedIn newsletter 
Art of Supply on AOP
Subscribe to the Art of Procurement Newsletter